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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI BR BASKARAN & SHIR PAVAN KUMAR GADALE
O R D E R
PER PAVAN KUMAR GADALE JM:
The assessee has filed the appeal against the order of National Faceless Appeal Centre (NFAC), Delhi / CIT(A) order passed U/sec 250 of the Act. The assessee has raised the following grounds of appeal:
1. The intimation passed by assessing officer u/s. 143(1) of I.T. Act and confirmed by First Appellant Authority is bad in law and deserves to be uncalled for.
Fakhera Charitable Trust, Mumbai. - 2 -
The assessing officer as well as First Appellant Authority has erred in law and on facts in not allowing the deduction of expenditure incurred by the appellant amounting to Rs. 37,53,460/-.
The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal
during the course of hearing.
2. The brief facts of the case that the assessee is a charitable trust and filed the return of income for the A.Y 2018-19 on 08.10.2018 disclosing a total income of Rs. 89,950/- after claiming the expenditure of Rs. 37,53,460/- towards the application of funds for charitable purpose. Whereas the return of income was processed u/s 143(1) of the Act with disallowance of the claim and the total income was determined at Rs. 38,48,520/- vide order dated 01.10.2019.
3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A),whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the Fakhera Charitable Trust, Mumbai. - 3 - order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal.
4. At the time of hearing, none appeared on behalf of the assessee and the Ld.DR has supported the order of the CIT(A).
We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld.CIT(A) has issued the notices of hearing referred at Page 2 Para 4 of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions of the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of Fakhera Charitable Trust, Mumbai. - 4 - natural justice shall provide one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal and we allow the grounds of appeal of the assessee for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 21.04.2023.